-
Sincerity and Excitement: when should be
emphasized in the Chinese context?
- Evidence from Chinese medicine industry
BY
Kwan Man Ching
06015638
China Business Studies / BBA
An Honours Degree Project Submitted to the School of Business in
Partial Fulfillment of the Graduation Requirement for the
Degree of Bachelor of Business Administration (Honours)
Hong Kong Baptist University
Hong Kong
April 2009
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ACKNOWLEDGEMENTS
I would like to take this opportunity to express my sincere
gratitude to my
supervisor, Dr. Alex Tsang for his wholehearted support during
the whole process of
this project. Thank you for all his valuable time and
recommendations. Without his
advice and guidance, I am sure that this project would not be
completed in such a
smooth way.
Besides, I would like to thank all those who have helped me
distribute the
questionnaires. Here I would also like to specially thank Dr.
Tracy Zhang for inviting
her students to be participants. Also, I would like to show my
appreciation to the
participants spending their valuable time to fill in the
questionnaires.
Again and again, thank you very much for all the people who have
assisted me in
this research project. I would also like to thank my friends for
encouraging and
helping me when I faced difficulties in completing the
project.
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ABSTRACTS
This paper aims to bridge the gaps between brand management
studies between
the western and the Chinese literatures. It examines the
relationships between brand
personality and brand credibility moderated by the different
country image
perceptions, using two-way ANOVA analysis. Based on the five
brand personalities
proposed by Aaker (1997), two brand personalities, sincere and
exciting, were
selected. These two personalities were tested under two country
images, ancient and
modern, which reflect how consumers perceive the recent
development and growth of
China. Evidences from a student sample participants revealed
that the moderation
effect of country image on the brand personalities to brand
credibility is significant. It
was shown that a sincere brand would generally perform better
under an ancient
image, while the modern image fit much well with an exciting
brand. Furthermore,
each country image perceptions contributed differently to the
relationship. Results
manifested that the moderation effect on exciting brand was
stronger when comparing
to that on sincere brand which was found insignificant. These
findings illustrated the
fit and match of country image with the product category and
brands. This provided
direct and important implications for future research and China
brand managers.
KEYWORDS: China, Brand personality, Country-of-origin image,
brand credibility
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TABLE OF CONTENTS
Acknowledgements 1
Abstracts 2
Problem Identification 4 - 5
Conceptual Background and Hypothesis building 6 - 13
Measurement 13 - 16
Research Methodology 17 - 21
Product category included in the study
Research design and Data Collection procedures
Result 21 - 28
Reliability and Validity
Manipulation check
Analyses
Discussion & implications 28 - 32
Theoretical implications
Managerial implications
Limitations & Future research 32 - 34
Conclusion 35 - 36
References 36 - 40
Appendix 41 - 57
Questionnaire samples
Advertisement samples (Sincere x Ancient)
Advertisement samples (Sincere x Modern)
Advertisement samples (Exciting x Ancient)
Advertisement samples (Exciting x Modern)
Tables of means and other statistical data
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PROBLEM IDENTIFICATION
At the point when Chinas engagement with the global market is
unprecedented
in both its intensity and breadth, Chinas impact on the
international arena becomes
increasingly significant. Simultaneously, China has also been
influenced by various
values and cultures. Despite her long history and abundant
heritage, the image of
China has been shaped to be more modernized and contemporary in
the sake of
continuous growth. The way how consumers think about the country
image of China
has changed. People, both in China and over the world, begin
believing the Chinese
ability in advanced and scientific technology. Inevitably, how
China should be viewed,
ancient or modern, causes ambivalence and confusion somehow.
Under such a
dilemma, it is extraordinarily crucial for brands, especially
those with rich traditional
Chinese color, to clearly demonstrate what they mean to the
consumers. It is also
strategic and tactical to identify suitable brand personality
and reinforce them to adapt
to ever-changing China.
Based on the customer-based brand equity (CBBE) model, brand
meaning can be
broadly distinguished in terms of more functional,
performance-related considerations
versus more abstract, imagery-related considerations (Keller,
2001). This research has
drawn more emphasis on the imagery side and one out of the four
categories (Keller,
2001), brand personality, has been chosen to be tested.
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Brand Personality can be strongly associated with usage and user
imagery which
in turn attribute to brand meaning (Keller, 1993). It is an
important concept for brand
differentiation, which significantly influences consumers
purchase decision-making,
and is receiving increasing attention in the marketing domain
(Aaker, 1997). A
favorable brand personality could also increase consumer
preference and usage (Sirgy,
1982), foster feelings of comfort and confidence in the minds of
consumers (Biel,
1993), enhance levels of loyalty and trust (Fournier, 1998), and
could provide a basis
for brand differentiation among the myriad brands on the market,
thus potentially
influencing consumers brand purchase intention (Keller, 1993
& 2003). Moreover,
Brand personality, as a fundamental source of products symbolic
values, also
embodies the cultural meanings (McCracken, 1986). Nevertheless,
in the emerging
market like China, researches and studies related to brand
personality are limited in
amount.
Attempting to bridge the gaps, this research examines how
country image, as a
moderation effect, impacts between brand personality and brand
credibility. At the
same time, it is hoped that this research can provide useful
insights for the positioning
and revitalization of Chinese brands, especially the
hundred-year brands, by
addressing when a particular brand personality should be
stressed.
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CONCEPTUAL BACKGROUND AND HYPOTHESIS BUILDING
Brand Personality
Research on brand personality has attracted significant
attention during the last
decade, and could be subdivided into three streams (Wang &
Yang, 2008). One
stream investigates the various dimensions of brand personality
across countries and
areas, such as Aaker (1997); one stream focuses on the
antecedents of brand
personality or its fit, such as Lau and Phau (2007) and another
stream investigates the
consequences of brand personality or its fit, such as Freling
and Forbes (2005). This
study is categorized under the third stream.
Brand personality is formally defined as the set of human
characteristics
associated with a brand (Aaker, 1997). Based on the compositions
of human
personality - the Big Five Model (Norman, 1963; Tupes &
Christal, 1958), Aaker
(1997) suggested five brand personality dimensions (1)
sincerity, (2)
excitement, (3) competence, (4) sophistication and (5)
ruggedness. The brand
personality framework and scale developed by Aaker have
important implications for
researches examining the perceptions of brand personality across
cultures.
Nonetheless, the scale might not be appropriate for measuring
brand personality in
different cultural contexts (Zhang, 2007). For example, some
personality traits used,
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such as western, independent, etc., may not be generalized in
collective oriental
markets. For the Chinese context, these dimensions may need to
be refined.
Sincere and exciting brand personality templates merit attention
in the light of
their prominence in the marketing landscape (Aaker, Fournier
& Brasel, 2004).
Further, these two personalities are fundamental in the sense
that they capture the
majority of variance in personality ratings for brands (Aaker,
1997), a finding that is
robust across individuals, product categories and cultural
contexts (Aaker,
Benet-Martinez & Garolera, 2001).
In China, Huang and Lu (2003) have developed 5-dimension
measurement based
on the Confucian culture, constituted of ren (), zhi (), yong
(), le ()
and ya (). They found ren embeds the most abundant cultural
characteristics
and closely corresponds to sincerity. Notwithstanding the great
significance of le
(), the conformity of le and excitement was found to be loosely
defined, while
ren and excitement revealed a negative correlation. It seems
that the description
exciting is fairly matched with the Chinese brands.
Yet, as Chinas technique and technology enhance with her
modernization steps,
exciting Chinese brands increasingly prevail in the markets and
challenge the status of
incumbent hundred-year, sincere brands. It is interesting to
study how sincerity and
-
excitement brand personalities impact on Chinese brands to adapt
to the Chinas
changes.
Brand Credibility
Brand, unlike a person, is unable to respond to the consumers.
It is questionable
if there is a relationship between a brand and consumers.
Nevertheless, some previous
studies found that the concept of a brand-consumer relationship
is a logical extension
of brand personality. It was suggested that brands possess some
human characteristic
(Aaker, 1991) and consumers are not difficult in thinking about
them as human
characters (Blackston, 1993; Levy, 1985). Consequently, if
brands can be personified,
then consumers would not just perceive them, but would also have
relationships with
them (Blackston, 1992; Kapferer, 1992).
In a collective country, Chinese values trust and credibility
which are essential
antecedents of relationship formation. Evidence about the
importance of trust in loyal
relationships is paramount. Morgan and Hunt (1994) indicate that
trust is a strong
predictor of relationship commitment. Many other studies have
shown that trust is at
the core of successful relationships (e.g., Berry 1995).
A very similar concept, brand credibility, has also been studied
as an important
antecedent of perceived quality (Aaker, 1991) and management of
credibility is a key
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issue in brand management (Swait & Erdem, 2007). Erdem and
Swait (1998) define
brand credibility as "the believability of the product position
information contained in
a brand, which entails consistently delivering what is
promised.
The importance of credibility stems from the fact that imperfect
and asymmetric
information creates consumer uncertainty about product
attributes. When a market is
characterized by imperfect and asymmetric information, brands
can serve as signals of
product positions (Wernerfelt, 1988). Credibility underlies
consumer confidence in a
firm's product claims (Erdem & Swait, 1998). Differing from
the credibility of
individual marketing mix signals (e.g. advertising as a quality
signal), brand
credibility represents the cumulative effect of the credibility
of all previous marketing
actions taken by that brand (Erdem, Swait & Louviere,
2002).
In general, brand credibility may (a) increasing perceived
quality and/or raising
expected quality (ceteris paribus) (Aaker, 1991), (b) decrease
the variance of
consumer attribute beliefs, i.e., consumer perceived risk
(Srinivasan & Ratchford,
1991), and (c) decrease information costs (Shugan, 1980; Erdem
& Swait, 1998).
In the CBBE model, brand credibility is a crucial component of
brand judgments
at the Brand response stage. Keller (2001) defines that brand
credibility refers to the
extent the brand as a whole is seen as credible in terms of
three dimensions: perceived
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expertise (e.g. competent, innovative, a market leader),
trustworthiness (e.g.
dependable, keeping customer interests in mind), and likeability
(e.g. fun, interesting,
worth spending time with). In the other words, credibility
measures whether
consumers see the company or organization behind the brand as
good at what it does,
concerned about its customers, and just plain likable (Keller,
2003, P. 68).
As the previous stage exerts influence on the next stage in the
model, brand
meaning embarks different brand responses. Consequently, brand
judgments, which
focus on customers personal opinions about the brand based on
how they put together
different performance and imagery associations (Keller, 2001),
may be altered by
brand personalities. This concept is in line with the findings
of Fournier (1998) that
brand personality increases levels of trust and loyalty and this
research will further
explore in how brand personality affecting brand credibility in
particular.
Country image
The COO literature has usually assessed country image in terms
of consumer
perceptions of products from different countries. In general,
there are many
definitions of country image, which can be further categorized
into 3 groups: (1)
overall country image (Martin & Eroglu, 1993), (2) aggregate
product country image
(Narayana, 1981), and (3) specific product country image (Roth
& Romeo, 1992). In
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the research, the overall country image, which is the total of
all descriptive, inferential,
and informational beliefs that a consumers has about a
particular country (Martin &
Eroglu, 1993), will be taken. In line with one of the first COO
studies Bannister and
Saunderss (1978) definition, it is a generalized image created
by variables such as
representative products, economic and political maturity,
historical events and
relationships, traditions, industrialization, the degree of
technological virtuosity and
etc., which will have effects upon consumer attitudes additional
to those emanating
from the significant elements of the products.
Country-of-origin image plays a significant role in consumers
perceptions
toward products and brands from a given country (Bilkey &
Nes, 1982; Johansson et
al., 1986) Hong & Wyer (1989) find that Country image could
directly exert positive
impact on consumers product quality evaluations. Han (1989) has
also attempted to
explain two roles of Country image; one is the halo effect and
the other is the
summary effect. On one hand, when consumers are not familiar
with a product or a
brand, the consumers tends to rely on halo effects which can
indirectly affect
consumers product/brand attitudes when inferring the
product/brand attributes. On
the other hand, they summarize their beliefs regarding
product/brand attributes and
this summary construct directly influences consumers attitudes
toward the
product/brand, when they are familiar with the
product/brand.
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Country images moderation effect
In accordance with Czellar (2003) and Roth & Romeo (1992),
the relative
importance of brand personality may also depend on country
image. Thakor &
Katsanis (1997) have developed a model of brand and country
effects on quality
dimensions. They suggest that country image cues affect quality
perceptions both
directly and through the brand cue. In this sense, brand
credibility, as an impotent
antecedent of quality perceptions (Aaker, 1991), may also be
influenced by country
image in the interaction with a particular brand trait. Thus,
when a brand can be
distinctively differentiated from other brands on personality,
and its COO image is
perceived as positive, consumers tends to be more reassured
about and more easily
influenced by their perceptions of that brands personality. In
contrast, when brand
personality is positive, while COO image is negative, the
connection between these
two variables would become loose. Brand personality would be
less influential
regarding brand credibility as a consequence.
However, it is questionable in what sense the country image is
positive or
negative and how it fits the product categories. In the light of
the need for further
research in the fits and the moderation effect, this research
aims to examine the
interaction between the 2 contradictory brand personalities,
sincerity and
excitement and the 2 extreme country images, ancient and modern,
in the context of
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a transforming market like China.
H1: Country image moderates between the relationship between
brand
personality and brand credibility.
H2: Ancient country image influences brand credibility more
positively on
sincere brand than on exciting brand.
H3: Modern country image influences brand credibility more
positively on
exciting brand than on sincere brand.
FIGURE 1: CONCEPTUAL MODEL
Overall Brand Credibility
MEASUREMENT
Brand personality
Aaker (1997) developed and tested the Brand Personality Scale
(BPS). BPS
includes five personality factors: sincerity, excitement,
competence, sophistication,
Brand Personality Sincerity
Excitement
+ Expertise Likeability
Trustworthiness
Country image Ancient Modern
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and ruggedness. This study employs the sincerity and the
excitement dimensions to
measure brand personality. All the facets and the sub-items were
weighed and tested
based on their significance within the groups according to
Aakers (1997) and the
pretests findings. Referred to the dimensions of Aaker (1997), 2
out of 4 facets under
both sincerity (i.e. Honest and Wholesome) and excitement (i.e.
Spirited and
Up-to-date), consisting of 6 and 5 items for each personality
respectively, were
selected and adopted to measure brand personality in this
research.
Brand credibility
Keller (2003) has proposed possible measures of brand building
blocks (Keller,
2003, P.75). The measure rating the brand credibility, in which
9 questions for the
three aspects were suggested, is employed. The questions will be
converted to
statement with a 7-point Likert-typed scale applied. (1=
strongly disagree; 7= strongly
agree).
Country image
Conceptualization and measurement of "country image dimensions"
appears to
have evolved in a somewhat unsystematic manner in the COO
literature (Thakor &
Katsanis, 1997). Martin & Eroglu (1993) proposed that
country image has three
underlying dimensions, namely economic, political and
technological. The
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dimensions proposed are known as country image in macro-level.
Other researches
focused more on the micro-level in which both multidimensional
(Cattin et al., 1982;
Han & Terpstra, 1988) and unidimensional construct (Roth
& Romeo, 1992; Amonini
et al., 1998) were considered. Nevertheless, there is no
consensus on the number and
nature of the micro country image dimensions. Despite numerous
dimensions
proposed, no particular dimension is found to fit with the
research topic in regarded to
the Chinas dilemma.
Roth and Romeo (1992) noted that country appears to be a
multidimensional
construct. As such it is unclear that a single measure of
overall quality can be deemed
equivalent to country image. Yet, COO studies have frequently
used a single measure
of products quality rating in order to understand the impact of
made-in stereotypes
(e.g. Crawford & Garland [1988]; Hong & Wyer [1989];
Howard [1989]). In the light
of this, one semantic-differential dimension is set and
concerned in this research.
Ancient versus modern are placed at the two opposite extremes to
illustrate a
common belief that these 2 concepts cannot be integrated - a
modern brand would not
possess stubborn traditions.
The divergence reflects the reality that there are trade-offs
inherent in virtually
all aspects of business. Keller (2006) highlighted that
21st-century firms must possess
creativity to overcome tough marketing dilemmas, such as
Continuity versus Change
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as well as Classic versus Contemporary image in tactical. At the
same time, a
successful firm must also be disciplined in its approach to
growing its business, which
in itself at times can present a trade-off with innovativeness.
Such a trade-off is also
known as the researchs interest Chinas branding dilemma..
The two extremes of the dimension are defined as:
Ancient: Long history, traditional wisdom and customs,
disciplined, classic, etc.
Modern: Up-to-date design, advanced technology, innovative,
contemporary, etc.
Based on the above definition, Ancient links with a countrys
history, heritage
and cultural abundance while Modern relates to its technical
advancements,
inventiveness and technology innovation. Similar dimensions of
country image have
not only once been used in the COO literature. The former facet
was adopted in
Nagashima (1970), Martin & Eroglu (1993) and etc., while the
latter one was
consistently found in White (1979), Han & Terpstra (1988)
and etc. Contrary to other
studies, these two facets have been combined in a
semantic-differential way instead of
treating as two separate dimensions. An advantage for such a
treatment is to magnify
the ambiguity in the market dilemma and provide more useful
insights for managerial
decisions.
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RESEARCH METHODOLOGY
Product category included in the study
Chinese medicine industry was selected as our research setting.
It was assumed
that many participants would have used products from these
categories and were able
to evaluate them. Two brands were included in this product
category for the two
personalities being studied.
Chinese medicine industry was selected for three main reasons.
First, heritage
and technology has drawn equally importance nowadays. Non-scaled
Chinese
medicine can hardly be compared with the quantified Western
medicine in tradition;
whereas there demands a move to advanced technology and
scientific method in the
industry as China become more and more modernized. Moreover,
with a
non-quantitive nature, credibility is owned to be the primary
factor of brand choice.
Second, as globalization intensifies, the popularity and the use
of Chinese
Medicine have been enhanced. Many hundred-year brands, such as
Beijing Tong Ren
Tang () and Gui Zhou Tong Ji Tang (), have been facing
more fierce competition with the modern domestic brands like
2036 or even foreign
brands like Eu Yan Sang originating from Singapore. It is
necessary to reinforce a
favorable brand personality as a point-of-difference.
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Third, Chinese medicine is one of the most valuable heritage of
China and
embodies profound culture meanings. The dilemma between history
and modern is
magnified in such a context. This provides more salient result
for investigation. For
the reasons above, it is desirable and essential to explore the
research topic in Chinese
medicine industry.
In this research, only a single aspect of the CBBE model was
interested.
However, the different levels of the CBBE Model are highly
interacted. Hardly can a
set of existing brands, of which the brand awareness and
familiarity are the same, be
identified. Therefore, a new brand is created for the research
purpose with better
control.
Research design and Data Collection procedures
This research collects data by means of a questionnaire which
consists of two
parts. The first part measures the three factors, i.e. brand
personality perceptions,
brand credibility and country image perceptions; the second part
records the
demographic information, the familiarity with country of the
participants and the
screening questions.
The sampling frame is students who are Chinese Medicine
consumers, including
actual consumers and potential consumers. Therefore, all
participants were screened
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by 1) whether they have ever purchased any Chinese Medicine
products before; 2)
whether they would consider taking Chinese Medicine when they
get ill; and 3) the
frequency of their consumption.
The data was collected from a student sample (n=100) from Hong
Kong Baptist
University. All the participated students were invited through
e-mail or in-personal to
fill in the questionnaire in the separated rooms according to
the different
advertisement versions.
As a cover story, participants will be told that the marketer of
a particular brand
of Chinese medicine is considering a new advertising campaign
using the Chinas
development as background, and that consumer perceptions to the
campaign are
needed. At the beginning, they were exposed to the country image
frame by being
given an advertisement framing the development of China. Ancient
and Modern
perceptions were primed. Following with the readings, the
participants were subject to
a few screening questions about their consumption and usage of
Chinese Medicine.
Brand credibility was first to be measured and country image
perceptions was
measured then. The participants were finally asked of the
questions about their brand
personality perceptions. At the end of the questionnaire, some
demographic
information was collected.
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The survey questionnaire reflected a 2 (brand personality) x 2
(Country Image)
between-subjects design, consisted of two between-subjects
factors (country image
and brand personality). The factor country image encompasses two
levels (Ancient
and Modern) and the factor brand personality is categorized into
two levels
(sincerity and excitement).
Country Image
Ancient Modern
Sincerity X1 X2
Bran
d pe
rson
ality
Excitement X3 X4
Two different versions of the questionnaire, one for each
country image, were
designed for each of the brand personality included in the
study. Therefore, a total of
four versions of the questionnaire were designed, with each
respondent completing
only one version. Each respondent was exposed randomly to one
frame, and asked to
rate brand credibility, measures of brand personality
perceptions and measures of
country image perceptions.
Personality was manipulated through three venues: (1) overall
tonality as
conveyed through the vocabulary choice (e.g. Care for you for
sincere brand vs.
Opt for breakthrough for exciting brand); (2) advertisement
visuals, including
colors (Soft grey, brown, yellow vs. Bright red, white, green)
and font (Heping
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Xili- vs. Jinmei Maobeijie- ); and formatting (Regular vs.
Moving). Alternatively, country image was manipulated through 2
aspects: (1) content,
as conveyed through the examples and composition of the
description (Following the
tradition for ancient image vs. Employing new technology for
modern image); and
(2) the graphics used in the background and illustrations (Herbs
and Master piece vs.
Pills and Chromatograph). The manipulation has further verified
though two
pretests (n= 40)
The questionnaire will be designed originally in English.
Accuracy of the
Chinese version was verified using a back-translation procedure
with external
translator(s) unaware of the hypotheses.
RESULTS
This research will follow a two-step approach as recommended by
Anderson and
Gerbing (1988). The first step in this approach is to develop an
acceptable
measurement model before building on this model to predict
causal relationships
among the study variables.
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Reliability and Validity
Cronbachs will be used for the items of each construct as
reliability check.
Notably, Nunnally and Bernstein (1994) suggested that 0.7 should
be used as the
cutoff point for reliability with items that did not
significantly contribute to the
reliability (item to total coefficient0.5) being deleted for the
purpose of parsimony.
To determine the constructs validity, the brand personality and
country image
scales will be tested for both convergent and discriminant
validity. Bivariate
correlation analysis was used to provide evidence of convergent
validity. According to
the following table, the correlation coefficients for the six
components of sincerity
were in the range of 0.424 to 0.762, which were all significant
at the p< 0.01 level.
Results also showed that the correlations among the five
components of exciting
ranged from 0.522 to 0.723 and all were statistically
significant at the p< 0.01 level.
Only weak correlations among the two brand personality
manipulated were found.
(sin) -
Honest (sin) -
Sincere (sin) - Real
(sin) - Wholeso
me01
(sin) - Wholeso
me02 (sin) - Friendly
(ex) - Spirited
(ex) - Daring
(ex) - Young
(ex) - Imaginati
ve (ex) -
Trendy
(sin) - Honest 1 (sin) - Sincere .725** 1 (sin) - Real .688**
.762** 1 (sin) - Wholesome01 .449** .508** .526** 1 (sin) -
Wholesome02 .584** .488** .517** .614** 1 (sin) - Friendly .542**
.512** .424** .590** .604** 1
(ex) - Spirited .166* .038 .124 .054 .239** .212* 1 (ex) -
Daring .005 -.057 .048 .159 .223* .124 .637** 1 (ex) - Young .078
-.075 .056 .130 .136 .217* .565** .708** 1 (ex) - Imaginative .107
-.041 .066 .099 .178* .220* .573** .706** .643** 1(ex) - Trendy
.070 .069 .088 .157 .238** .270** .522** .709** .664** .723** 1
**. Correlation is significant at the 0.01 level (1-tailed); *.
Correlation is significant at the 0.05 level (1-tailed).
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In addition, results presented below revealed that correlations
among the five
components of country image ranged from 0.288 to 0.616 and were
statistically
significant at the p< 0.01 level.
Traditional wisdom vs Advanced Tech. Long history vs
Up-to-date design Classic vs
Contemporary Disciplined vs
innovative Ancient vs Modern
Trad. Wisdom vs Advan. Tech. 1
Long hist. vs Up-to-date design .541** 1
Classic vs Contemporary .532** .580** 1
Disciplined vs innovative .325** .288** .399** 1 .
Ancient vs Modern .508** .387** .563** .616** 1
**. Correlation is significant at the 0.01 level (1-tailed).
Thus, evidence of convergent validity was provided since the
correlation pattern
showed that components of each of the brand personality and
country image were
convergent within a common construct.
To test dscriminant validity, a simple factor analysis employing
the principal
component method was conducted on components of the brand
personality, COO
image and the brand credibility. Results showed that six factors
emerged and
explained more than 71% of the total variance. Factor loadings
were all above 0.5 on
their corresponding constructs, showing that the participants
could discriminate
between the measures of brand credibility, brand personality and
country image, thus
providing evidence of discriminant validity (Podsakoff &
Organ, 1986)
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Variables Factor 1 Factor 2 Factor 3 Factor 4 Factor 5 Factor 6
Cred Likeability - like .868 Cred Likeability - admire .795 Cred.
Expertise - trust .730 Cred Likeability - respect02 .655 Cred
Likeability - respect01 .646 Cred. Expertise - knowledgeable .601
Cred. Expertise - innovative .570 Cred. Trustworthiness - having in
mind .801 Cred. Trustworthiness - caring .796 Cred. Trustworthiness
- understanding .591 Personality (sin) - Honest .836 Personality
(sin) - Sincere .785 Personality (sin) - Wholesome02 .745
Personality (sin) - Friendly .711 Personality (sin) - Real .505
.644 Personality (sin) - Wholesome01 .637 Personality (ex) - Daring
.865 Personality (ex) - Trendy .783 Personality (ex) - Imaginative
.774 Personality (ex) - Young .765 Personality (ex) - Spirited .646
Country Image - Trad wisdom vs. Advan. Tech .833 Country Image -
Classic vs. contemporary .768 Country Image - Long Hist. vs.
Up-to-date design .753 Country Image - Ancient vs. Modern .591 .556
Country Image - Disciplined vs. innovative .632 Notes: Percentage
of total variance explained 71.1%.
Manipulation check
To assess the effectiveness of the brand personality
manipulation, participants
rated the degree to which the brand could be described by
sincerity traits (sincere,
wholesome) as well as exciting traits (exciting, young and
trendy; 1=strongly disagree;
7= strongly agree) (Aaker, 1997). A 2 (brand personality) x 2
(country image) run on
the sincerity index yielded only a main effect of brand
personality, where higher
ratings on the sincerity index were found in the sincere
condition versus the exciting
condition (Msincerity= 4.48 vs. Mexcitement= 4.14; F= 5.23, p
< 0.05). A 2x2 on the
- 24 -
-
exciting index also yield a brand personality main effect, where
higher ratings on the
exciting index were found for the exciting versus sincere
condition (Mexcitement = 4.17
vs. Msincerity = 3.60; F= 7.77, p < 0.01).
To assess the country mage manipulation, participants were asked
the degree to
which China can be described either ancient or modern in
each
semantic-differential question. An 2x2 ANOVA run on the country
image index
yielded only a main effect of ancient image where those in the
ancient frame had
lower ratings on the index than those in the modern frame
(Mancient = 3.02 vs. Msincerity
= 3.79; F= 20.18, p
-
ANOVA
To test the hypotheses, the overall model was run on the
evaluation index, an
average of the nine items of three brand credibility indicators.
Brand personality and
country image served as between-subjects variables. As expected,
the ANOVA
resulted in a significant two-way brand personality x country
image interaction (F=
12.48, ps< 0.01). This suggests that country image acts as a
moderator between brand
personality and brand credibility. In other words, the sincere
brand could attain higher
brand credibility under the ancient frame, whereas the exciting
brand could attain
higher brand credibility under the modern frame. Therefore, H1
is strongly supported.
Contrast Analysis
To explore the viability of hypothesis 2 and 3, the differential
impact of the
- 26 -
-
country image was examined on brand credibility with the two
personality types with
contrast tests.
For the insight into H2, which suggests the influence of ancient
country image is
more positive on a sincere brand than on an exciting brand,
contrast on brand
credibility between the sincere x ancient and the exciting x
ancient
conditions was examined. Contrasts showed that brand credibility
was significantly
higher for the sincere brand than the exciting brand both framed
the ancient country
image (M = 3.99 vs. 3.34; F= 5.23, p < 0.05), thus supporting
H2.
It was hypothesized in H3 that modern country image influences
more positively
on the exciting brand than the sincere brand. Based on the
contrasts on brand
credibility between the sincere x modern and the exciting x
modern
conditions, it was revealed that the exciting brand attained
higher brand credibility
than the sincere brand under the modern frame (M = 4.10 vs.
3.72; F= 5.23, p < 0.05).
Therefore, H3 is supported.
Interestingly, it should be noted that the moderating effect of
country image
exerts a stronger impact on the exciting brand than the sincere
brand. Follow-up
contrasts revealed that there was significant difference in
brand credibility of the
exciting brand under ancient versus modern country image (M
ancient = 3.34 vs. M modern
- 27 -
-
= 4.10; F= 5.23, p < 0.05), whereas no significant difference
was showed in the brand
credibility of the sincere under the two country image. This
illustrated more clearly
how the moderating effect of country image varies with different
personalities and
brand credibility perception is resulted.
DISCUSSION & IMPLICATIONS
The present study aimed to examine the relationship between
brand personality,
country image and brand credibility, specifically in the Chinese
context. This research
provides new findings for the literature and offers support to
some existing findings.
Theoretical Implications
Resulted revealed that country image was found to be a moderator
in the
relationship between brand personality and brand credibility. It
should be highlighted
that very few studies have been conducted on the interaction
effect of COO and brand
personality in the US or non-US settings (Wang & Yang,
2008). The findings also
contribute to some insights on the complexity of COO effects,
particularly with the
culture- embodied brand concepts. Aaker (1997) has highlighted
that brand
personality varies with different cultures. Due to the culture
specific nature and the
important linkage between a country and its culture, it is
valuable to explore this topic
- 28 -
-
in China, where her cultural heritage is of abundance as well as
the brand
management concepts are not mature and consolidated.
In addition, it has long been argued that country image is
dynamic, and believed
to change with time (Jaffe & Nebenzahl, 2001). This is
perfectly describing the case
of recent China, which is undergoing transforms and
modernization. Increasingly,
China owns her reputable national brands, such as Haier,
exerting her impacts around
the world. It is believed the label of Chinas products standing
for cheap, low-end and
poor qualities, has been changing since its entry to World Trade
Organization. This
research has provided some interesting findings on how brands
should change with
the changing country image. It was found that the two brand
personalities studied,
sincere versus exciting, behave oppositely each together under
the two country image
framed, ancient versus modern. This also echoes the proposed
future research of Ravi
et al (2007) on examining whether the impact of the macro and
micro country images
on the consumer-based equity of a brand changes over time.
Sincere and exciting brand personality templates merit attention
in the light of
their prominence in the marketing landscape (Aaker, Fournier
& Brasel, 2004). This
research studied the fit and match of country image with the two
most dominant brand
personalities, extending the prior studies by giving a more
in-depth understanding of
how they differ and perform under different settings. It
provides evidence to explain
- 29 -
-
what exactly means a favorable or unfavorable country image
(Ravi et al, 2007) and
what gives a negative or positive COO effects (Wang & Yang,
2008). For instance,
ancient carries the meaning in two flows, negative and positive,
as well as
conservativeness and traditional wisdom. Notwithstanding
whatever meaning, it is not
a good idea to link an exciting brand with the idea of ancient
since it may cause
ambiguity and deteriorate the brand meaning as a result. In this
sense, an ancient
country image could be concluded to be unfavorable and exert a
negative COO effect
to exciting brands. It is suggested that any county image may
not have absolutely
good or bad meaning in its nature, but the COO effect depends on
its fit and match
with the product category and the particular brand.
Managerial implications
This research pinpoints some important keys which benefits
marketers and brand
managers, particularly of the hundred-year brands.
Traditionally, marketers focus has
been on developing the word-of-mouth and the quality of their
brands and products.
This story holds the same for China. Some evidence has showed
that marketers need
to go a step further and manage the country image, while also
managing their
marketing mix (Ravi et al, 2007). In other words, apart from
composing both good
brand strategies to differentiate themselves in the market,
companies need to either
stress or downplay the COO effect, depending on whether the
relevant COO image is
- 30 -
-
- 31 -
positive or not, in order to achieve market success.
First, brand managers have to consider whether to down play the
country image
in the marketing mix. It should be first pointed out that the
practice of using the
country spots and country development as the frame or background
of advertising
campaign is so prevailing in China. For example, it is not hard
to find brands using
famous landmarks as their brand name, like the Great Wall ().
Moreover,
marketers frequently employ some impressive architecture, like
the Olympic
buildings in Beijing, the Oriental Pearl Tower in Shanghai and
etc., as the
advertisement or package background, symbolizing that they are
keeping pace with
the countrys development and imply that they are modern and
contemporary.
However, the findings suggested that such a kind of practice may
not be suitable for
all the cases. Brand managers should pay attention the use of
country image related
elements. They need to consider if there is a genuine need and
it is of a desperate
importance, thus choosing the most suitable theme for managing
the marketing mix.
Second, manager should be responsive enough to the changes in
the environment,
including the country development. Especially for the
hundred-year brands,
revitalizing their brand meanings accordingly to the changing
country perceptions
may be opted as an essential step to secure their sales and
their leading position. It is
crucial for managers to identify and eliminate the outdated and
irrelevant elements
-
actively by regularly measuring the brand equity and understand
consumers tastes.
Brands should play a more proactive role in educating consumers
about their
transformation and breakthroughs. Failure to revitalize the
brand implies a deficiency
in brand management and is devastating to the brand
prospect.
Most importantly, brand managers should be aware of the clarity
of the
positioning. The findings suggested country image or other
single elements may not
be definitely positive or negative in essence. The effectiveness
of a marketing mix
cannot be determined by a single factor. Fit and match with the
country image and the
elements in CBBE model deserves attention and emphasis. Brand
management is a
very dynamic process. Therefore, in order to formulate the best
combination of
marketing mix, managers should always refer back to positioning
to see whether it is
clear or not.
LIMITATIONS & FUTURE RESEARCH
According to Herbig & Milewicz (1995), brand credibility
represents the
cumulative effect of the credibility of all previous marketing
actions taken by that
brand. In other words, brand credibility takes time to develop
through different tools
in the marketing mix. For experimental purposes, the present
research created a new
- 32 -
-
brand with the aid of a full-page advertisement. Undeniably, a
certain level of brand
credibility has been ignited, but its intensity and strength are
questionable. Therefore,
priority in further research should be given to replicating the
present study using the
existing brands, then with different product categories, brands,
countries and
consumer populations as explained below.
The model developed in this study was tested for only one
product categories.
Given that country-of- origin effects are believed to be product
category specific
(Kaynak & Cavusgil, 1983; Jaffe & Nebenzahl, 2001),
further testing is therefore
required to establish whether the results can be generalized.
Clearly, researchers
should include other brands and product categories in similar
studies. Moreover,
future studies may use different types of product such as other
convenience goods and
durable goods, or even services (of varying degree of
intangibility).
A small portion of participants were mainland students who were
not borne or
grew up in Hong Kong, but were included in the analysis. Due to
nationalism, they
might possess special affection towards China. Participants who
originated from other
cities might hence exhibit different degrees of understanding
about the Chinese
culture and report different country image perceptions compared
with participants
who soaked with the historical colonial impact. This might have
biased the results.
Moreover, country-of-origin effects are known to vary by
consumer nationality
- 33 -
-
(Bilkey & Nes, 1982) and culture (Gurhan-Canli &
Maheswaran, 2000).
In addition, the present study used data collected from a
student sample from a
university in Hong Kong. Hence it is possible that this sample
may not be
representative of consumers nationwide. Yet, it should be noted
that the focus of this
research is theory testing, but not aiming for generalizability.
It is also very often to
use student sample in experiments for better controls (e.g.
Aaker, Fournier & Brasel,
2004). Furthermore, they possessed a shared value system founded
in the university
education. They tend to be more homogeneous thus providing with
higher internal
validity. Notably, Chinese medicine is a product that they know.
Therefore, it is
considered that a student sample should be representative
enough. Still, additional
research with national samples would help in establishing the
broader generalizability
of the results.
Extant literature does not provide clues of how the lower level
of the CBBE
model interacts with the upper level. This research has touched
on this field by taking
brand personality on a brand meaning level, as an antecedent,
influence the brand
credibility on the brand response level. Yet, further research
may examine how brand
personality interacts with another more abstract dimension, such
as the brand feeling
and loyalty. The results would help marketing managers
understand the use of
affection elements to ignite consumers feelings and
responses.
- 34 -
-
CONCLUSION
In the light of the impact of the changing country image on the
consumers
perceptions towards Chinese brands and products, this research
aims to bridge the
gaps between the western and the oriental literature in brand
management and country
image. This research has studied the moderation effect of
country image between the
brand credibility and brand personalities.
Evidence has shown that the interaction effect was significant.
In other words,
brand personality exerts different levels of influence on brand
credibility under
different country image perceptions. It was found that a sincere
brand was better
matched with an ancient image, while an exciting brand would
perform well under a
modern image. Furthermore, it seems that the moderation effect
impacts less on the
sincere brand than the exciting brand.
These findings were found in line with the extant researches and
further extended
their studies by echoing their calls for future research. On the
other hand, some
recommendations for brand management, such as revitalization and
positioning, were
drawn. This provided valuable cues and improvements on practice
for brand managers
in China. It was concluded that the objective of this research
was fulfilled and
remarkable insights for both theoretical and managerial aspects
were contributed.
- 35 -
-
At the end, some limitations of this research have been stated
and suggestions
were made for further improvements. Besides, in regarded to the
significance of
extending further on this topic, some future research directions
were proposed.
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APPENDIX QUESTIONNAIRE SAMPLE (ENGLISH)
A new Chinese Medicine Brand will enter the Hong Kong market
very soon. To promote this brand and introduce its products, the
brand has decided to launch a marketing campaign with Chinas
development as the promotion theme. Your comments and perceptions
toward the campaign are very useful and valuable.
You are invited to be one of our honorable guests to read the
unpublished advertisement draft of the campaign. An advertisement
is attached with this questionnaire separately. Please read it
first and then complete the questionnaire. It just takes about 5-10
minutes. Your sincere help is highly appreciated. Thank you very
much!!
Part (A)
(Please circle the correct or the most suitable answers for the
following questions.)
1. Have you ever purchased any Chinese medicine products?
A) Yes B) No
2. Have you ever consumed any Chinese medicine products?
A) Yes B) No
3. How often do you consume Chinese medicine products?
A) Rarely (0-1 times per month) B) Seldom (2-4 times per
month)
C) Sometimes (5-8 times per month) D) Often (9-12 per month)
E) Very often (>12 times per month)
To what extent are you familiar to Chinese medicine
products?
4. Very unfamiliar 1 2 3 4 5 6 7 Very familiar
5. Very common 1 2 3 4 5 6 7 Very uncommon
6. Very infamous 1 2 3 4 5 6 7 Very famous
-
- 42 -
Part (B)
Circle the best description of your agreement on the following
statements. (1= strongly disagree; 7= strongly agree.)
Strongly disagree Strongly agree
7. The makers of this brand are knowledgeable 1 2 3 4 5 6 7
8. The makers of this brand are innovative. 1 2 3 4 5 6 7
9. You trust the makers of this brand. 1 2 3 4 5 6 7
10. You like this brand. 1 2 3 4 5 6 7
11. You admire this brand. 1 2 3 4 5 6 7
12. You respect this brand. 1 2 3 4 5 6 7
13. The makers of this brand understand your needs. 1 2 3 4 5 6
7
14. The makers of this brand care about your opinions. 1 2 3 4 5
6 7
15. The makers of this brand have your interests in mind. 1 2 3
4 5 6 7
Part (C)
Circle the best description of what you have learnt about China
from the advertisement.
16. China is a country with Traditional wisdom 1 2 3 4 5 6 7
Advanced technologies
17. China is a country with Long history 1 2 3 4 5 6 7
Up-to-date design
18. The products of China are Classic 1 2 3 4 5 6 7
Contemporary
19. In general, China is a _______ country. Disciplined 1 2 3 4
5 6 7 Innovative
20. All in all, China is a ________ country. Ancient 1 2 3 4 5 6
7 Modern
-
- 43 -
Circle your own perceptions towards China.
21. Feudal 1 2 3 4 5 6 7 Open
22. Developing 1 2 3 4 5 6 7 Developed
23. Favourable 1 2 3 4 5 6 7 Unfavourable
Part (D)
Imagine the brand is your new friend. How do you think about him
based on the information from the advertisement? Circle the best
description of what the brand is. (1= strongly disagree; 7=
strongly agree.)
Strongly disagree Strongly agree
24. Honest 1 2 3 4 5 6 7
25. Sincere 1 2 3 4 5 6 7
26. Real 1 2 3 4 5 6 7
27. Wholesome 1 2 3 4 5 6 7
28. Friendly 1 2 3 4 5 6 7
29. Spirited 1 2 3 4 5 6 7
30. Daring 1 2 3 4 5 6 7
31. Young 1 2 3 4 5 6 7
32. Imaginative 1 2 3 4 5 6 7
33. Up-to-date 1 2 3 4 5 6 7
Circle the best description of how you feel about the brand.
34. Very unfavorable 1 2 3 4 5 6 7 Very favorable
35. Negative 1 2 3 4 5 6 7 Positive
36. Bad 1 2 3 4 5 6 7 Good
-
- 44 -
Part (E)
Circle the best description of your agreement on the following
statements. (1= strongly disagree; 7= strongly agree.)
Strongly disagree Strongly agree
37. This brand pretend to be something it isnt. 1 2 3 4 5 6
7
38. I know what this brand stands for. 1 2 3 4 5 6 7
39. I have trouble figuring out what image this brand is 1 2 3 4
5 6 7 trying to create.
Strongly disagree Strongly agree
40. In general, people really do care about the 1 2 3 4 5 6 7
well-being of others.
41. Most of the time, people care enough to try to be 1 2 3 4 5
6 7 helpful, rather that just looking out for themselves.
42. I think people generally try to back up their words 1 2 3 4
5 6 7 with their action.
43. Most professionals are very knowledge in their 1 2 3 4 5 6 7
chosen field.
Strongly disagree Strongly agree
44. I am comfortable making purchases of Chinese Medicine 1 2 3
4 5 6 7.
45. There are enough safeguards to make me feel comfortable 1 2
3 4 5 6 7 using to consume and buy Chinese Medicine products.
46. I feel assured that legal and technological structures 1 2 3
4 5 6 7 adequately protect me from problems with Chinese
Medicine.
47. In general, the institutional environment is a safe now for
1 2 3 4 5 6 7 buying and consuming Chinese Medicine products.
-
- 45 -
Part (F)
(Please circle the correct or the most suitable answers for the
following questions.)
48. Studying Field:
A) School of Chinese Medicine B) Faculty of Science C) School of
Communication
D) Faculty of Social Sciences E) Faculty of Arts F) Academy of
Visual Arts
G) School of Business Other: (Please specify)
49. Gender: Male / Female
Age: _______________ (Please specify.)
-
- 46 -
APPENDIX QUESTIONNAIRE SAMPLE (CHINESE)
UU
-
- 47 -
50. ?
A) B)
51. ?
A) B)
52. ?
A) ( 0-1 ) B) ( 2-4 ) C) ( 5-8 )
D) ( 9-12 ) E) ( 12 )
53. 1 2 3 4 5 6 7
54. 1 2 3 4 5 6 7
55. 1 2 3 4 5 6 7
UU1= 7=
56. 1 2 3 4 5 6 7
57. 1 2 3 4 5 6 7
58. 1 2 3 4 5 6 7
59. 1 2 3 4 5 6 7
60. 1 2 3 4 5 6 7
61. 1 2 3 4 5 6 7
62. 1 2 3 4 5 6 7
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UU1= 7=
63. 1 2 3 4 5 6 7
64. 1 2 3 4 5 6 7
65. 1 2 3 4 5 6 7
U U
66.
1 2 3 4 5 6 7
67.
1 2 3 4 5 6 7
68.
1 2 3 4 5 6 7
U U______
69. 1 2 3 4 5 6 7
70. 1 2 3 4 5 6 7
UU
71. 1 2 3 4 5 6 7
72. 1 2 3 4 5 6 7
73. 1 2 3 4 5 6 7
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U U (1= 7= )
74. 1 2 3 4 5 6 7
75. 1 2 3 4 5 6 7
76. 1 2 3 4 5 6 7
77. 1 2 3 4 5 6 7
78. 1 2 3 4 5 6 7
79. 1 2 3 4 5 6 7
80. 1 2 3 4 5 6 7
81. 1 2 3 4 5 6 7
82. 1 2 3 4 5 6 7
83. 1 2 3 4 5 6 7
84. 1 2 3 4 5 6 7
UU
85. 1 2 3 4 5 6 7
86. 1 2 3 4 5 6 7
87. 1 2 3 4 5 6 7
UU(1= 7= )
88. 1 2 3 4 5 6 7
89. 1 2 3 4 5 6 7
90. 1 2 3 4 5 6 7
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- 50 -
UU(1= 7= )
91. 1 2 3 4 5 6 7
92. 1 2 3 4 5 6 7
93. 1 2 3 4 5 6 7
94. 1 2 3 4 5 6 7
95. 1 2 3 4 5 6 7
96. 1 2 3 4 5 6 7
97. 1 2 3 4 5 6 7
98. 1 2 3 4 5 6 7
()
99.
A) B) C) D)
E) F) G) : ()
100. __________________ ()
101. /
102. __________________ ()
!!
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APPENDIX
Advertisements (Sincere x Ancient)
Advertisements (Sincere x Modern)
Advertisements (Exciting x Ancient)
Advertisements (Exciting x Modern)
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APPENDIX TABLES OF MEANS AND OTHER STATISTICAL DATA
Demographic Statistics
Frequency
Studying Year Gender Age Valid 100 100 100N
Missing 0 0 0Mean 2.1400 1.6900 21.0100Std. Deviation .82902
.46482 1.34461Variance .687 .216 1.808
Studying Year
Frequency Percent Valid Percent Cumulative Percent0 1 1.0 1.0
1.0
1 25 25.0 25.0 26.0
2 33 33.0 33.0 59.0
3 41 41.0 41.0 100.0
Valid
Total 100 100.0 100.0
Gender
Frequency Percent Valid Percent Cumulative PercentMale 31 31.0
31.0 31.0
Female 69 69.0 69.0 100.0
Valid
Total 100 100.0 100.0
Age
Frequency Percent Valid Percent Cumulative Percent18 1 1.0 1.0
1.0
19 12 12.0 12.0 13.0
20 25 25.0 25.0 38.0
21 28 28.0 28.0 66.0
22 18 18.0 18.0 84.0
23 13 13.0 13.0 97.0
24 3 3.0 3.0 100.0
Valid
Total 100 100.0 100.0
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ANOVA Results
Descriptive Statistics
Dependent Variable:Overall Credibility
Sincere vs Exciting Ancient vs Modern Mean Std. Deviation N
Ancient 3.9880 .64182 25
Modern 3.7200 .70475 25
sin
Total 3.8540 .68070 50Ancient 3.3440 .96569 25Modern 4.1000
.50990 25
ex
Total 3.7220 .85435 50Ancient 3.6660 .87426 50Modern 3.9100
.63832 50
Total
Total 3.7880 .77137 100
Tests of Between-Subjects Effects
Dependent Variable:Overall Credibility
Source Type III Sum of Squares df Mean Square F Sig.
Corrected Model 8.478Pa P 3 2.826 5.380 .002Intercept 1434.894 1
1434.894 2.732E3 .000PER .436 1 .436 .829 .365CIadsLABEL 1.488 1
1.488 2.833 .096PER * CIadsLABEL 6.554 1 6.554 12.476 .001Error
50.428 96 .525 Total 1493.800 100 Corrected Total 58.906 99
a. R Squared = .144 (Adjusted R Squared = .117)
Contrast Tests
Contrast
Value of
Contrast Std. Error t df
Sig.
(2-tailed)
Ex., Ancient Vs. Modern -.7560 .21841 -3.461 36.417 .001
Sin., Ancient Vs. Modern .2680 .19064 1.406 47.586 .166
Modern, Ex. Vs. Sin. .3800 .17397 2.184 43.723 .034
Overall
Credibility
Ancient, Ex. Vs. Sin. -.6440 .23191 -2.777 41.741 .008